The interest on the Savings Bank Accounts in the Post Offices may be increased to 4% from the present 3.5% if the report of the government committee headed by the RBI Deputy Governor Smt. Shyamal Gopinath is accepted. The committee has recommended to increase the rate to 4%. In fact, the interest in PO SB, which are mostly used by the employees and the common people has been very low comapared to the loan rate which has been going high and higher.The recommendations will give some relief to the SB Account holders.
Another recommendation is that the annual investment limit in the Public Provident Fund (PPF) has been increased from Rs. 70,000 to Rs. one lakh.